Origin of Residual Oil Zones and Emergent Commercial Exploitation

‘UNCONVENTIONAL’ EOR TARGETS

Residual Oil Zones

The Wyoming Enhanced Oil Recovery Institute‘s Conference Entitled “Recovering Stranded Oil through Improved and Enhanced Oil Recovery Technologies” September 13 – 14, 2010 Snow King Resort Jackson, WY 2 Past Thanks Go to:

• Some of the Early Pioneering Work Done in Wyoming & the Rockies Looking at Reservoir Hydrodynamics • King Hubbert – circa 1950’s • The UTPB ‘Team’ in Midland/Odessa • The Research Partnership to Secure Energy for America (RPSEA) • The U.S. DOE and Advanced Resources, International Much Work Remains so…. Future ‘Thanks’ Likely to Go to:

• RPSEA • USDOE • Cooperating Industry Partners • EORI 3 But First…………..

Geologist his 4 RESIDUAL OIL ZONES A GAME CHANGER? WHERE ARE THEY AND HOW FORMED? Origins of Residual Oil Zones and Identification Methodology

• ROZ Origins (…..Sorry if this is Repetitive) • The Fascinating ROZ Science – State of the Knowledge • ROZ Types – Examples • The Anecdotal Evidence • Screening Methodology • A Southern Williston Example • A Wyoming Example • We’ve Only Just Begun – So Much Work Yet to be Done 5

The Stage is Set for the Age of EOR

Example Quotes:

“Kuwait Researchers Forecast Global Conventional Crude Oil Production Will Peak in 2014

“The End of Cheap Oil?” (Former Shell President)

“The New Cycle of Resource Nationalism is Bad News” (‘Universal’ Concern) A Lot of Folks have Looked at EOR Targets Like we Looked at Waterflood Targets (i.e., Main Pay Zones only)

Let’s Re-examine (Challenge) that Perspective 7

Original Oil Accumulation Under Static Aquifer Conditions (A Hypothetical Example)

W E 8 Original Accumulation Subject to a Westward Regional Tilt

WW EE

TYPE 1 ROZ 9

Original Accumulation with a Breached then Reformed Seal

ORIGINAL POST BREACH

TYPE 2 ROZ 10

Change in Hydrodynamic Conditions, Sweep of the Lower Oil Column, Oil/water Contact Tilt, and Development Of The Residual Oil Zone W E

TYPE 3 ROZ 11 All Three of those Post Entrapment Adjustments (Scenarios) Lead to Pay Zone Flushing Attributes of the ROZ Types Case History: Region 1

Let’s Talk a bit about the Permian Basin 13

San Andres (Permian Guadalupian) 14 Post-Subsidence (Entrapment) Phase* of Permian Basin Development**

~50% of Permian Basin Production WEST EAST

* Dated at Late Permian through Cretaceous ** Adapted from Lindsay, R.F. (2001), W. Tx Geological Society Fall Symposium, Oct 01, Midland Tx USA 15 Extensional Phases and Reduction of Hydrodynamic Gradients in the Permian Basin*

EAST

* Ref: Lindsay, R.F. (2001), W. Tx Geological Society Fall Symposium, Oct 01, Midland Tx USA 16

A Curious Exploitation ‘Thing’ Has Quietly Moved Forward in the Permian Basin MIDDLE SAN ANDRES PALEOGEOGRAPHY

with Location of Active Industry ROZ Zones/CO2 EOR Projects*

NORTHWEST NORTHERN SHELF SHELF Restricted Carbonate Shelf VACUUM WASSON FIELD (DENVER & FIELD BENNETT RANCH UNITS HANFORD FIELD SEMINOLE FIELD Guadalupe Shelf Margin Hobbs GOLDSMITH FIELD EASTERN Mountains “reef” Central Midland New Mexico SHELF Basin Texas Platform Delaware Midland San Angelo Basin Basin

There are 9 total Open ROZ projects now Marine Rumor has it there is with two more a Chemical EOR ROZ scheduled for pilot underway and start by early ‘11 another one in design Marathon Overthrust Belt

* Adapted from Sagnak (2006), Chevron Presentation at the

12/06 CO2 Flooding Conference (Anecdoctal) Evidence of ROZs 19

OIL SHOWS WITHOUT PRIMARY (OR SECONDARY) PRODUCTION • Residual Oil in Cuttings • Utility of Mud logs • Drill Stem Tests

UV LIGHT WHITE LIGHT 20

SWEEP WATER* ATTRIBUTES

• Updip Origins – Surface Caverns – Karst • Evidence of “Connection” to Petroleum Sources and Entrapments – Fairways – Lineaments

– Sulfur, H2 S, Reservoir ‘Alchemy’ • Discharge (Corrosive Zones) • Temporal Effects – Mixing Zones (think both laterally and vertically) – OWC Tilts

* The “Flushing Water” - Most of these Relate to Type 3 ROZs: Lateral Sweep Origins Another “Anecdote” 21

OWC Tilts (Type 3 ROZs) 22 Distribution of San Andres Tilted Oil-Water Contacts in the Northern Shelf and Central Basin Platform Areas of the Permian Basin* But OWC Tilts Occur Elsewhere 23 Permian Basin Stratigraphic Chart (Permian Only) OWC Tilts Occur Elsewhere 24 Abo Cross-Section Through Major NM Fields

Note: Tilted OWC

After Lemay (1960), Southwestern Federation of Geological Societies Transactions, Oct 12-14, 1960 And Yet……Other ‘Anecdotal’ Evidence Another “Anecdote” 26

DOLOMITIZATION

• Magnesium Rich Flush Waters • Porosity/Perm Enhancements • Pervasive Zonations • Geological Timing (Late Stage, Biogenic) • Anhydrite Conversion 27 Reservoir ‘Alchemy’

Zero Porosity Rock Biogenic Reaction

CaSO4 + HC CaCO3 + H2 O + H2 S

Non-Biogenic Chemical Reactions Reservoir Rock CaCO3 + Mg MgCa(CO3 )2

Picked up as Flush Water Moves through Mg Salts Gamma Ray Neutron Log

DST 486’ Sulfur H2O

5000’

First Currings Sample Shows = 5330’

ROZ 5500’ Northern Base of Cuttings ‘Strong” Flour = 5620’ Central Basin PDI* Platform Area 6000’

6500’

T/Glorieta

* Pervasively Dolomitized Interval 29

A Sidebar Thought

If Anhydrite Conversion Pervasively Occurs in the ROZ Does this Offer a Greater Application of Chemical (SP) Technologies? Another “Anecdote” 30

WATER SALINITIES

• Sulfur Water Occurrence • Source to Discharge Mixing • Evidence of Pathways Another “Anecdote” 31

SULFUR ACCUMULATIONS • Biological Processes – Aerobic – Anaerobic • Associations • Geographical Occurrence • Quantitative Estimates of Petroleum ‘Consumption’ • Did the Flushed Oil all Get Consumed? – Strat Traps Down-gradient – Heavy Oil and Tar Sands Down-gradient But….at least in the PB, a Lot of Oil Stayed in Place 33 (SCOPING PHASE) PERMIAN BASIN RESIDUAL OIL ZONE STUDY*

*

ACRONYMS USED: OOIP = Original Oil in Place; BB = Billion Barrels, TZ = Transition Zone; ROZ = Residual Oil Zone, MPZ = Main Pay Zone * Ref: Technical Oil Recovery Potential From Residual Oil Zones: Permian Basin, U.S. Department of Energy Report, Koperna, G.J., Kuuskraa, V.A., Advanced Resources International, Feb 2006 Ho Hum…..I work in the Rockies so what do I care about the Permian Basin?

Let’s Look Outside WILLISTON BASIN

ROZ METHODOLOGY SOUTHERN WILLISTON BASIN

ROZ PLAYS? 37 Why Look for ROZs in the Southern Williston Basin?

• The Source Rock for the Ordovician Reservoirs is Thermally Mature to Overmature at the Basin Center, and Pinches Out On the Basin Flanks. Winnipeg Shale and Marine Shales of the Red River Formation are Thought to be the Primary Source Rock. Hydrocarbon Generation and Migration is Estimated to Have Begun in Late Paleozoic Time1 (entrapment stage). • The Black Hills uplift is a large, rather simple, doubly plunging anticlinal uplift of Laramide age (second stage) and appears to be related to faulting at depth2. • The Area Thus Meets the Requirements of at least two stages of tectonics.

1) Peterson, James A. and MacCary, Lawrence M., 1987, "Regional Stratigraphy and General Petroleum Geology of the U.S. Portion of the Williston Basin and Adjacent Areas", Williston Basin: Anatomy of a Cratonic Oil Province, Rocky Mnt Assoc of Geologists, p. 9-43. 2) Geomorphology from Space, NASA Ref http://disc.sci.gsfc.nasa.gov/geomorphology 38 Regional Structure of the Mission Canyon Fm. and Location of Important Oil Fields and Greater Billings Nose Study Area, Williston Basin *

* Ref: Berg, R.R., DeMis, W.D., Mitsdarffer, A.R. (1994), “Hydrodynamic Effects on Mission Canyon (Mississippian) Oil Accumulation, Billings Nose Area, North Dakota,” AAPG Bulletin, V. 78, No. 4, April 1994, pp. 501-518 39

Williston Basin Stratigraphic Column

Mississippian: Mission Canyon Formation

Ordovician: Red River Formation 40

Regional Production and Shows for the NW South ND Dakota Region. The Map SD Shows Both the Areas of Oil and Gas Production and Buffalo Field Areas Where Hydrocarbon (Red River) Lantry Field Shows in ‘Dry Holes’ were (Red River) Encountered. The Colors Correspond to the Stratigraphic Formation or Interval in which the Production or Show is Associated (After United States Geological Survey, 1996). 41 Red River Oil Fields in NW So. Dakota

Lantry Field Parameters Buffalo Field Parameters (an example of Cedar Creek Anticline production) Formation: Ordovician Red River Formation: Ordovician Red River Lithology: limestone / dolomite Lithology: limestone / dolomite Average Depth: 5000 feet Average Depth: 8600 feet Porosity: 10% Porosity: 20% Permeability: unknown Permeability: unknown Oil / Gas Column: unknown Oil / Gas Column: unknown Ave. Net Pay Thickness: 30 feet Ave. Net Pay Thickness: 15 feet Other Formations w/ Shows: Mission Canyon, Stony Other Formations w/ Shows: Charles and Red Mtn, and Red River River

Other Information: initial IP 24 BOPD; gravity 22 API; Other Information: initial IP 80 BOPD; gravity 30 62 BWPD; cumulative production (1995) 135 MBO, API; 200 BWPD; cumulative production (1995) 19.8 5.2 MMBW, 1 well; Dewey County; primarily a MMBO, 47.2 MMCF, 93 wells; Harding County; structural / stratigraphic trap; also produces large primarily a stratigraphic trap. volumes of 140 degree formation water. 42

Example Log for a Red River Formation Hydrocarbon Show. Taken from a well within the Standing Rock Indian Reservation Boundary (after Howells, 1982) 43 The Nature of the Red River Formation

General Characteristics: The Red River Formation is the second most productive formation in the Williston Basin. Reservoirs are dolomites and dolomitic limestones formed from bioclastic mounds and tidal flat deposits. Cyclic episodes of carbonate, evaporite, and organic rich shale provide reservoir, source and seal.

Major MPZ accumulations are found on structural noses such as Nesson and Cedar Creek Anticlines. Smaller fields are found in fold structures draped over basement fault blocks, or small, carbonate mounds. Accumulations in Harding County, SD are thought to be primarily stratigraphic (hydrodynamic?) traps.

Source rock is thermally mature to overmature at the basin center, and pinches out on the basin flanks. Winnipeg shale and marine shale of the Red River Formation are thought to be the primary source rock. Hydrocarbon generation and migration is estimated to have begun in Late Paleozoic time.

The only non-Harding County Red River production in So. Dakota is 115 miles NE of Rapid City Dewey County and about the same distance SE of the Buffalo Field in Harding County. Shows are present in most wells penetrating the Red River in the region and include oil staining in core, and gas and oil cut mud and water on DST's. 44 LET’S INTRODUCE SOME TERMINOLOGY IT’S TIME TO TALK ABOUT SWEEP IN TERMS OF BROWNFIELDS* AND GREENFIELDS Greenfield

TYPE 3 ROZ

* Residual Oil Zone Beneath a Main Pay Zone 45

For Our Final Journey Down the ROZ Methodology ‘Highway,’

Let’s Look at a Wyoming Example*

* Disclaimer: I don’t claim to be an expert on Reservoirs in Wyoming (wish I were) – this is all about ROZ methodology and how one might start a study on ROZs (BTW, thanks to EORI staff with their help here already) 46

Frannie Oil Field, Big Horn Basin Illustrating the SW OWC Tilt of ~600 ft/mi*

* Ref: Hubbert, M.K. (1953), “Entrapment of Petroleum Under Hydrodynamic Conditions,” Bull Amer Assoc of Petr Geologists, Vol 37, No. 8 (August 1953), pp. 1954-2028. Ref: Stone, D. S. , 1967, Theory of Paleozoic oil & gas accumulation in the Big Horn Basin, Wyoming. AAPG, Vol 51, p. 2056 – 2114. Wyoming Big Horn Basin and the Goose Egg Field 49

Wyoming (Big Horn Basin) Stratigraphic Permian: Phosphoria Column Formation

Pennsylvanian: Tensleep Formation 50

Goose Egg Field Field Description Goose Egg Field, BH Basin 52

‘Anecdotes’ for Goose Egg

•• .Two (maybe more) Stages of Tectonics •• .Tilted OWC (100-200’/mile) •• .Shows in Wells Off-Structure Just Touching the Surface here – More Work to be Done • Look at Core, Cuttings • Estimate Oil Saturation in ROZ 53 Summary (1)

• The Day has Arrived when EOR can Compete with Conventional Oil Recovery • EOR Opens up the Scope of Reservoir Targets to Residual Oil Zones – we have got to quit thinking EOR is limited to MPZs (think Brownfields and Greenfields) • Lots of Understanding is Needed for these ROZs, Organizations Like EORI can help Tremendously (already have!) 54 Summary (Cont’d)

• There are Processes at Work in the ROZs that are not at Work in the MPZs – e.g., microbial, sulfur conversion • Many of the Processes at Work in the ROZs have affected the MPZs

– e.g., H2S generation • The Advancement of Understanding ROZs is Clearly Multi-disciplinary (get the geologist back on the horse) The End

(Before the Questions: a Couple of ‘Mentions’) 56

The CO2 Conference Week is Coming! If this ROZ Work Strikes your Fancy

Please Catch Me Later….We need some good help!!!!